http://www.gulfkeystone.com/ The firms exploration programme in Algeria is going well and "the shares look good value", say the Investors Chronicle. Your comments please. goal.

Best i can make out,is the former CEO Todd is interested,or so the rumour goes?

i'm not fussed ...... around 120 would do me nicely, but fat chance

If they have been paid....they might not want to be taken over or they might just sell a percentage....

(GKP.L), a foreign oil producer in Iraqi Kurdistan, is exploring a potential sale amid lengthy talks with the Kurdistan Regional Government over delayed payments for oil exports, the company is set to disclose on Wednesday, according to Sky News.

The oil company is working with Deutsche Bank as its financial adviser as it weighs strategic alternatives, the report said, citing sources. (bit.ly/1afU3bQ)

The Sky News report, however, did not identify any potential suitors or partners for the British oil producer that earlier had said it was taking a "prudent approach" with capital expenditure in 2015 and that its board was considering a number of long-term financing options.

"A sale of Gulf Keystone is by no means certain, although it is likely to attract interest from possible buyers including rival oil explorers in the region," Sky News said.

Oil producers across the globe are trying to deal with the financial consequences of a sharp decline in oil prices since last year's peak in June.

Earlier this month, Gulf Keystone and its partner MOL PLC MOLB.BU said they had suspended all trucked exports of crude from the Shaikan oilfield in Northern Iraq.

The Kurdish Regional Government owes the region's oil companies months' worth of oil export payments. It has been catching up on such outlays since Iraq's central government reinstated budget allocations to the autonomous authority late last year.

Representatives for Gulf Keystone, which has a market value of 316.72 million pounds ($489.90 million) as of Tuesday's close, could not be reached for comment.


(Reporting By Aurindom Mukherjee in Bengaluru; Editing by Ken Wills)

http://calgaryherald.com/business/energy/chevron-goes-big-into-bonds

Apparently they are owed over $250 million by the KRG . The KRG own 20% of GKP .

ulf Keystone Petroleum (GKP) Trades
59.13
+23.63 (+66.56%)
live: 11:52AM GMT
Buy Volume 20,199,961 Trade Low 40.85
Sell Volume 15,850,196 Trade High 61.36
? Volume 2,090,698 VWAP 52
Total Volume 38,140,855 Prev day Vol 0
Status: Connected
(Pause Streaming)
Time Price Qty Type Bid Offer B/S Total Buy Total Sell
11:52:44 59.23 2,002 O 58.75 59.50 Buy 20,209,997 15,864,273
11:52:37 59.06 2,609 O 58.75 59.50 Sell

http://www.moneyam.com/action/news/showArticle?id=4983371



25 February2015

Gulf Keystone Petroleum Ltd. (LSE: GKP)
("Gulf Keystone" or "the Company")
Strategic Update

Further to the Company's RNS of 6 February 2015, Gulf Keystone, the operator of the world class Shaikan field in the Kurdistan Region of Iraq, is announcing today that it has recently engaged in discussions with a number of parties in relation to possible asset transactions or a sale of the Company.

/strong>

That means raising capital by part sale......good....nothing wrong with that.....it would be crazy to sell this company now they are being paid...but in the middle east ; nothing is that simple...

Might just be a case of running out of cash due to non-payment by KRG and having to sell some assets to meet the debt repayment deadlines.

Print
Alert
TIDMGKP

RNS Number : 9069F

Gulf Keystone Petroleum Ltd.

26 February 2015

Not for release, publication or distribution, directly or indirectly, in whole or in part in or into the United States or any jurisdiction other than the United Kingdom and Bermuda where to do so would constitute a contravention of the relevant laws or regulations of such jurisdiction. This announcement (and the information contained herein) does not contain or constitute an offer to sell or the solicitation of an offer to purchase, nor shall there be any sale of securities in any jurisdiction where such offer, solicitation or sale would constitute a contravention of the relevant laws or regulations of such jurisdiction.

26 February 2015

Gulf Keystone Petroleum Ltd. (LSE: GKP)

("Gulf Keystone" or "the Company")

Payment Confirmation

Further to the Company's RNS of 25 February 2015, Gulf Keystone confirms receipt into its bank account of a further US$26 million gross payment (US$20.8 million net to Gulf Keystone) constituting a pre-payment from a third party buyer for future Shaikan crude oil sales.

Enquiries:

Which is payment on a pro-forma invoice, presumably meaning that GKP don't trust their customer enough to pay the invoice after receiving the oil.

From yesterdays RNS.

As at today's date, the Company's cash balance is US$69.3 million and it has been informed that a further US$26 million gross payment (US$20.8 million net to Gulf Keystone) for Shaikan crude oil sales has been received by the Company's bank and is expected to be credited to the Company's account shortly.

At present they have cut back to the bone opex,with a ops update due Q1,along with SH11(producer)result expected.This should increase the potential to produce well in excess of 50kbopd,can't be bad when discussing any sale,along with this mega field?
Which is one of four,AB,BB,SA and the of course SH.

Seems to me that the SP is being held back,thats my impression when looking at the
run of sells(shorts?)?Any offer would come at a premium to the SP,which could mean that an offer will come near future??
aimho

Seems to me that the SP is being held back,thats my impression when looking at the
run of sells(shorts?)?Any offer would come at a premium to the SP,which could mean that an offer will come near future??
aimho

Goldman Sachs note from yesterday:
"We downgrade Gulf Keystone from Neutral to Sell with an updated 12 month target price of 36p (from 65p) implying 1% downside. We lower our valuation and estimates to reflect the announcement by the company that it is to temporarily suspend export production and focus on supplying the local market in order to maintain revenues and cash flow, given the limited visibility on export payment timing. We reduce our production assumption for 2015E by 25% to an average of 28.5kbopd from 38kbopd. We continue to believe Gulf Keystone’s liquidity position will be tight in 2015, particularly given our revised levels of production with debt repayments due in April and October 2015. We lower our capex budget for 2015E as we expect minimal spend on other assets; we remove value for exploration upside at Shaikan and delay the pace of ramp-up on its other assets. We see better opportunities elsewhere on a sector relative basis and downgrade the stock to Sell.

As with other operators in Kurdistan a key focus is visibility on the timing of export payments. We view updates here as a key catalyst for the stock given GKP’s tight funding position on our estimates. Despite the switch to local sales in the interim to maintain a level of cash flow, albeit at lower realizations, we continue to believe Gulf Keystone’s funding position is most at risk of the Kurdistan players.

Our 12-month SOTP-based target price of 36p (from 65p) assumes a long-run oil price assumption of US$70/bl. For those assets we deem to be strategic (Shaikan) we assume a 50% weighting for M&A. We also apply a 20% funding discount to our NAV to reflect the company’s tight funding position on our estimates."

Hmm?

GKP are owed over $300m + nearing $100m in cash at present,shortly to be allowed sales to the locals.Maybe a sale of an asset(AB?),perhaps $100/200m and able to produce 40kbopd,with the lokeluhood of increasing to 50kbopd. At 36p the M/Cap would be roughly £320m.
So whats the value of the assets,hmm?The followung is a c/ped of JG's latest reference
to SH's OIP.
--------------------------------------------------------------

LSE--We need to know IMO.

John Gersrenlauer said on 13 March 2014 that the dy/dx is 4 billion barrels of Reserves and Resources per 1% of Shaikan Fracture Porosity.

So if it's 1%, 4 billion barrels recoverable in the fractures alone (and the consulted experts and academic sources say that 1% is too low for a highly-fractured carbonate reservoir with open fractures);

If it's 2%, 8 billion barrels recoverable in the fractures alone (and the eminent consultant with whom I spoke last month said "if you have no data, that's what you use, 2%, that's what you use")

If it's 3%, 12 billion barrels recoverable in the fractures alone (and "joseki" reported that Gulf gave that very figure at the analyst meeting on 28 May 2012; he was then banned and the post deleted, but not before it had been saved. The Great Swarmi then said that 3%+ would fit an "intense and pervasive" fracture system, you can easily find his comments thanks to Dalesmann and his website with its extensive archived material).

We want the finest reservoir studies known to humanity, we want them here, and we want them now!

Well, fairly soon anyway.

-----------------------------------------------------------------------------------

So at 1% 4bbo(as much as the majors achieved in the last year (at what cost?).

For every billion barrels of oil, a value of just $0.3/barrel and these figures are for SH alone,AB,BB and SA not in the equation.

ps.
for the 12bbo mentioned((3%)a value of $0.0025/barrel

DAylight robbery i say.
BTWDIK?

Adding to the above,JG commented regarding one of the wells.a porosity of which
in over 35 years,he'd never experienced?

Interesting post?
-------From LSE....

The company is talking to multiple parties, and looks like a closed auction with blessing of KRG (see payment as show of support). KRG wouldn't want their crown jewel to be sold cheaply, nor do the expensive advisor DB and PW. Some confidence that if it happen the price won't be too low, otherwise as NM said there could be serious repercussion over concealing of JS from shareholders. GLA.
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i see nothing on (IG) reuters